Republic of the Philippines

EULOGIO “AMANG” RODRIGUEZ

INSTITUTE OF SCIENCE AND TECHNOLOGY

Nagtahan, Sampaloc, Manila

“RC Cola: It’s edge among its multi-international

competitors in the Philippines”

A Research Study

Presented to

The Faculty of the College of Professional Studies

In Partial Fulfillment of the

Requirements for the Degree of

Bachelor of Science in Business Administration

By

Lee Harvy A. De Guzman

Jessie L. Dela Cruz

Jorena Mae N. Giducos

Julius R. Idio

CHAPTER 1

Introduction:

“We’ll bring 14 plants of RC Cola’s manufacturing footprints

in the Philippines,” Alfredo Yao said. Owner and founder of

the Zest-O Corporation. As he explains how RC Cola is

expanding and gaining its popularity here in the

Philippines.

RC Cola is also a legend with a history spanning more than

100 years. Originally, Royal Crown Cola was born from the

efforts of a young pharmacist in Columbus, Georgia. After a

disagreement with a local soda bottler Claud A. Hatcher. He

began creating his own soft drinks. Never in his wildest

dreams could he have imagined that his experiments would

become successful and affectionately nicknamed RC Cola.

Early 2002, a sparkling group of marketing and manufacturing

experts pooled their strengths to establish a new soft drink

company. An RC Cola was born and first introduced in the

Philippines. As they sharing the same passion and ideals as

a royal crown international.

Today, RC Cola is developing to fit the Filipino’s taste

buds. As they envisions to offer a truly satisfying Cola

drink with an affordable price.

Statement of the Problem:

1. How does RC Cola differs from its bigger competitors

such as Coca- Cola Company and Pepsi from:

1.1 Products

1.2 Price

1.3 Place

1.4 Promotion

1.5 Personnel

1.6 Procedure Management

1.7 Physical Assets

2. What are the factors considered by the RC Cola Company

to having the most numbers of potential consumers?

3. Why masses or most numbers of Filipino consumers who

lives in a small community patronizes RC Cola?

Significance of the Study

The result of the study will provide useful data and

information for the following:

Royal Crown “RC COLA” Company. It gives them data and inputs

to improve and sustain their marketing strategy to be

locally competitive in the market.

Students. It provides additional information to enhance

their level of knowledge regarding the effectiveness of

marketing strategies.

Scope and Limitations

The study was focused on determining the common aspect why

does the people patronize the RC Cola. The scope of the

study is beyond the reach of the products of the Royal Crown

RC Cola Company but in a specific number of people which has

similarity in the study of the given problems that needs a

corresponding answers.

It involves the society where in we selected a small number

of people that has the same interest and although this

research was carefully prepared, we are still aware of its

limitations and shortcomings.

In addition, since the assessment of the pretest and post

test was conducted by the pantrus, it is unavoidable that in

this study, certain degree of subjectivity can be found. In

fact, it would have been sort of objective if it had been

decided.

Background of the study

RC Cola was name “Royal Crown” and the first cola was called

Chero-Cola. Royal crown international (RCCI), the global

beverage company of all independent bottlers of American

soft drinks brand RC Cola worldwide, has revealed that the

Philippines is the most successful overseas market to date.

Asian wide refreshment Corporation (ARC) is the licensed

bottler of RC Cola in the Philippines and it is the most

successful market.

Royal Crown Cola Company (RC), although never as renowned as

its rival Coca-cola, used the soft0drinks industry’s first

taste tests to prove that it was a superior soda. Forever

linked to a popular marshmallow-filled snack treat through

the country song “RC Cola and Moon Pie,” the company never

schools its strictly southern, small-town image, even though

it unveiled a series of industry firsts, including the first

aluminum cans, the first diet cola, and the first

ceffeine0free diet cola.

A young pharmacist named Claud Hatcher developed RC as a

bottled drink in 1905 to sell in his family’s grocery store.

After customers clamored for the drink, the family expanded

into soft drinks business starting Union Bottling Works. Its

best-selling product Chero-Cola, helped the company grow is

rapidly that by 1920 it had 7—franchise bottling plants.

Known as the Chero-cola company, it faced a lawsuit from

Coca-Cola, which insisted on exclusive rights to the word

“cola”. High legal bills and rising sugar prices forced the

company to drop “cola” from its name in 1923. When the

market for chero dropped off, the company discontinued the

beverage, pushing forward with a fruity soft drink called

Nehi instead. Chero became Nehi Corporation in 1928. In the

midst of the Great Depression of the 1930s, Nehi began to

struggle; competition and lackluster sales made it hard for

the company to pay its bills. Hatcher died in 1933, and H.

R. Mott took control of Nehi, dropping poor-performing

drinks and streamlining operations to make the company debt

free in a year. Mott's plan included taking the original

Chero-Cola and reintroducing it. The new Chero-Cola,

released in 1934 and named Royal Crown after Hatcher's first

drink, was a big hit, and in the late 1950s the company

changed its name to Royal Crown Cola Company. (Courts ruled

in 1944 that the company could once again use "cola" in its

name.)

Mott was replaced by C. C. Colbert as president and chief

executive officer in 1940. In that year, Nehi sales were ten

times what they had been less than a decade before, RC

products were available in nearly every state in the nation,

and its advertisements appeared in such publications as the

Saturday Evening Post and Good Housekeeping. Actors Lucille

Ball, Claudette Colbert, Joan Crawford, Ronald Reagan,

Shirley Temple, and Loretta Young were among those endorsing

RC as "Best by Taste Test."

The company continued to grow, and in 1954 it became the

first beverage company to nationally distribute soft drinks

in cans. Shortly thereafter, in 1959, RC became one of the

first to introduce the sixteen-ounce bottle. The company

produced the first low-calorie diet cola (Diet Rite), the

first caffeine-free diet cola (RC 100), and the first diet

cherry cola (Diet Cherry RC). Yet despite such innovations,

Royal Crown products reportedly reached only 2.5 percent of

the soft-drink market in the mid-1990s; Coke was the leader

with about 43 percent, just ahead of Pepsi, which had about

31 percent of the market share. Today, none of the top-ten-

selling soft drinks are Royal Crown products.

RC Cola was bought in October 2000 by the British company

Cadbury Schweppes. Its U.S. operations continue under

Cadbury Schweppes's largest beverage subsidiary, while its

international operations are handled by Canada's Cott

Corporation.

CHAPTER 2

MARKETING RESEARCH

Review of Related Literature and Studies

Related Literature

Local Sources

1. According to Mr. Doris C. Dumlao of Philippine daily

Inquirer (2013) the Philippine maker of American soft drink RC

Cola is making plans to debut on the local exchange of stocks to

fund a regional expansion program.

Asia wide Refreshments Corp. (ACR), which holds an exclusive

license from RC Cola USA to manufacture and distribute RC

Cola in the Philippines, may soon sell a mix of primary and

secondary shares equivalent to at least 30 percent of post-

initial public offering (IPO) stocks “hopefully” within this

year, according to businessman Alfredo Yao.

Yao, owner and founder of the Zest-O group, controls 80

percent of ACR. Based on the company’s website, other

business partners are entrepreneurs Tony Panajon, Gerry

Garcia, Butch Aves and Ricky Sandoval.

The businessman said the IPO size would be “definitely

bigger” than that of Philippine Business Bank, which raised

P3.2 billion from a primary share sale and listed

outstanding stocks on the Philippine Stock Exchange Tuesday.

ACR likewise held the license to manufacture and distribute

RC Cola across Southeast Asia, Yao said. New RC Cola plants

might be put up in Myanmar, Thailand and Vietnam, Yao said

at the sidelines of the listing of Philippine Business Bank.

“Even here (in the Philippines) we’re expanding. We have

just opened our Cagayan de Oro plant. We’ll be opening next

week our Pangasinan plant and construction (of a new plant)

is ongoing on Panay Island,” Yao said. This will bring to 14

plants RC Cola’s manufacturing footprint in the Philippines.

Asked why the RC Cola unit would go public ahead of flagship

Zest-O, Yao said it was easier to convince business partners

than family members to bring a privately held company

public. In the case of Zest-O, it might take awhile because

there was “sentimental value” involved, he said. Having said

that, the group has yet to mandate an investment the bank to

arrange the prospective offering. Investment banker Jojo

Dispo, president of First Metro Investment Corp., said the

Zest-O group might be “saving the best for last” in pursuing

RC Cola’s stock listing ahead of Zest-O’s.

He also noted that RC Cola’s expansion in the region was all

“in sync with the Asean trade integration,” referring to the

planned creation of a unified Southeast Asian market by

2015.

2. According to Mr. Topaz in the past December 09, 2010

First, some history behind RC Cola. Chero-Cola started

production in 1905, and produced a number of beverages with

the prefix "Royal Crown." They manufactured such drinkables

as Royal Crown Ginger Ale, and Royal Crown Root-Beer.

Finally, they decided to start making sense and changed the

name of Chero-Cola to Royal Crown Cola, to go along

with everything else they sold. That's quite funny in my

opinion; I don't know why they didn't go with Royal Crown in

the first place. But I digress. 

There's a certain magic to be had when drinking a bottle of

this delicious cola. You have a certain freedom, which can't

be destroyed by the two beverage giants, Coke and Pepsi. RC

is its own thing, and although it may be less popular, I

believe that it is the best out of the three. You just can't

get this sort of experience anywhere else.

Taste

RC has a very distinct flavor, and it leaves you craving

just one more sip every time. Many people always ask, "Do

you like Coke or Pepsi better?" My answer is always "Royal

Crown all the way!" It has a real strong cola flavor that

starts a bit bitter, but ends in a delicious sweetness that

sends a wave of pure awesome through the mouth and down the

esophagus.

RC has somewhat of an earthy flavor to it, which makes it

seems more authentic in my eyes. Don't worry though, it's

nothing major. In fact, it really complements the beverage,

creating an interesting diversion from the normal cola

taste, which in turn makes it taste even better. 

Texture

Of course, being a cola, RC has a bubbly carbonation going

on. Even better though, it has a sort of frothiness that

makes it seem light. RC does go flat fairly though, which is

something of a disappointment. RC does make up for this

however with its lack of high-fructose corn syrup overload,

which makes for a much smoother stream of liquid going down

your throat. (Unlike Big Blue, this sports the exact

opposite.) But another thing... It contains high-fructose

corn syrup! I would have expected the glass bottle to use

sugar, as it is with Coke and Pepsi, but I was wrong. RC

isn't either of them, after all.

Design

I bought the bottle pictured at the top of the post, which

is glass. This I like, however I could have bought the

plastic variant for much cheaper. As always, quality comes

at a price. I like the way the bottle is designed, meaning

the way the way the neck of it melds with the body. It's

very streamlined and unique. 

As for the logo, it's unexciting, but classic. RC Cola

rarely changes their logo, and if they do it's always a

minor change. Thumbs up to them for "Keeping it real," so to

speak. But you don't buy RC Cola to look at the bottle, do

you? (Well I do.) The twist-off metal bottle cap is

definitely a nice touch.

Overall Thoughts and Feelings

RC Cola is more scarce than other brands, but if you can

find it (Which I'm sure you can) it's definitely worth a go.

RC Cola has much more to offer in terms of flavor, which is

the key. It doesn't matter much that the bottle is boring,

really. Buy it for the taste, you won’t regret it.

3. Philippines most successful RC Cola market outside U.S.

According to RCCI President Edmund O. April 8, 2013 Manila,

Philippines (DMA) – Royal Crown Cola International (RCCI),

which handles the marketing of the American soft drink RC

Cola outside the U.S., has cited the Philippines as its most

successful international market.

RCCI President Edmund O’Keefe said Friday that local partner

Asia wide Refreshments Corp. (ARC) sell the soft drink very

well in the country. ARC has 10 bottling and distribution

plants in the Philippines.

O’Keefe and RCCI Managing Director Francis Lamprea were in

Manila last week to take part in the celebration of the RCCI

and ARC’s 10th year of partnership. They visited a community

for the homeless in the province of Pampanga to donate

$60,500 to the Living for Christ Foundation, which is

building and running the 700-home subdivision.

ARC people led by its executive vice president and chief

operating officer, Gerardo Garcia, accompanied O’Keefe and

Lamprea to the site to also donate the same amount at the

foundation will use to construct a wet and dry market.

ARC Chairman Alfredo Yao and Garcia also accompanied O’Keefe

and Lamprea to a courtesy call with Trade and Industry

Secretary Gregory Domingo at the country’s financial

district in Makati City Friday afternoon.

In the meeting, O’Keefe told Domingo that RCCI is also proud

of ARC for turning many Filipinos into entrepreneurs as

dealers of RC Cola.

The RCCI boss told Domingo he looks forward to ARC marketing

RC Cola to neighboring countries in Southeast Asia such as

Myanmar, Thailand and Vietnam.

ARC’s bottling and distribution system were studied by RC

Cola bottlers and distributors in Tajikistan and India for

adoption in the said countries, added Lamprea.

RC Cola was developed by Columbus, Georgia pharmacist Claude

A. Hatcher in 1905 and reformulated by Rufus Kamm in 1935.

The Dr. Pepper Snapple Group distributes the soft drink in

the U.S. while the RCCI, a subsidiary of Cott Beverages of

Canada, markets the product in other countries.

4. According to O'Keeffe(2013), a key success strategy of

ARC in the Philippines is adopting a business model that

values close partnership with dealers and encourages

sustainable livelihood. "Yesterday, we visited a lady who

started as a dealer six years ago in Antipolo. Today, she

employs around 15 people," noted O'Keefe.Royal Crown Cola

International (RCCI), the global beverage company of all

independent bottlers of American soft drink brand RC Cola

worldwide, has revealed that the Philippines is its most

successful overseas market to date. Asia wide Refreshments

Corporation (ARC) is the licensed bottler of RC Cola in the

Philippines.

"This [Philippines] is the most successful market of RC

Cola. We make a good product that these gentlemen from ARC

sell very well," remarked RCCI president Edmund O'Keeffe

during a courtesy call at the Department of Trade and

Industry (DTI) offices in Makati City on April 5.

O'Keeffe was referring to ARC Chairman Alfredo M. Yao and

Executive Vice President and Chief Operating Officer Gerry

T. Garcia, who both accompanied him and RCCI managing

director Francis Lamprea in meeting DTI Secretary Gregory

Domingo.

RCCI executives were recently in the Manila to participate

in the dinner gala that commemorated ARC's 10 years of

valuing partnerships in the country.

Lamprea added that ARC's unique distribution system

leverages on the innate entrepreneurial spirit of Filipinos.

Many communities thrive centered around the trade and

commerce that RC Cola distributorships provide, especially

in provincial and rural areas.

Commitment to delivering quality and a steady supply of

products is also vital behind ARC's success in catapulting

RC Cola to cult status in the Philippine market.

Now, the Philippine RC Cola business is serving as a model

for bottlers in other RC Cola markets such as Tajikistan and

India. Representatives from the RC Cola distributorship in

these two countries recently visited the ARC plants to study

its operation for adoption of best practices in their

respective businesses

"We're hoping that Mr. Yao and Mr. Garcia will take the

brand to other developing countries," said O'Keeffe on

expansion plans.

From one plant in Antipolo when ARC reintroduced RC Cola to

the Philippine market a decade ago, the company now has 9

plants, including one in Cagayan de Oro that started

operation in February and a partner bottler in Cebu.

5. According to Nelson C. Bagaforo of Sun Star Davao

(2011) as part of their continuing expansion program, Asia

wide Refreshments Corp. (ARC), maker of RC Cola soft drink

brand, is reportedly setting up a bottling plant in Cagayan

de Oro City to serve Northern Mindanao.

This CdeO plant will be the second in Mindanao after the

Binugao plant in Davao which opened just last year. ARC has

five other bottling plants situated in Metro Manila,

Southern Luzon and Central Luzon.

As a history, Gerry Garcia, current ARC executive vice

president and chief operating officer, along with Tony

Panajon and Butch Aves, decided to set up their own soft

drink company in 2002 and later teamed up with successful

entrepreneurs Alfredo Yao and Ricky Sandoval to establish

ARC.

Empowered with an exclusive license awarded by Royal

Crown Cola International, USA to manufacture and distribute

RC Cola in the Philippines, ARC steadily gained recognition.

Under the guiding hand of its founders, ARC, a 100 percent

Filipino owned, continues to flourish and is now a major

player in the beverage industry. It has at least realized

its vision to be the lowest cost producer of ready-to-drink,

non-alcoholic beverages and to be able to market products

with the best quality and value.

The all-time favorite cola in America since 1905 is now one

of the preferred cola in Metro Manila. RC Cola is now

available in 240 ml, 800 ml returnable bottles, 1.5 liter

PET bottles and 330ml cans.

Will RC Cola click in CdeO? Just some additional info,

Alfredo Yao owns Zest-O Corp. which has a plant in El

Salvador so most probably; the bottling plant will be set up

there.

Foreign Sources

1. Crazy for RC in Chile

August 18, 2010 by RC Cola International

According to the Canadian 2009 Carbonates Report, Chile

consumed roughly 2.09 billion liters of carbonates in 2008

and is projected to consume just over 2.19 billion liters of

carbonates in 2010. This equated to 124.4 liters per capita,

second in South America only to Argentina. And now, even

more Chileans can enjoy the many flavors of RC, including RC

Cola, RC Light, and RC Q Tropical, Lemon-Lime, Lemon,

Fantasy, Sun and Ginger Ale.

Royal Crown Cola International has teamed up with

Embotelladora Latin-American S.A. (ELSA) to launch RC Cola

throughout the country of Chile.

ELSA’s team is thrilled about working with a globally

recognized brand, such as RC Cola. Their fervor for the

brand will only add to the excitement created by the “Crazy

for RC” marketing campaign rolling out in September.

Combined with daily print advertisements, the Chilean

campaign will be supported by television spots and viral

presence.

Referring to the impending partnership, Edmund O’Keeffe,

President of Royal Crown Cola International, said, “RC Cola

International is proud to be teamed up with such a

distinguished organization. We welcome Embotelladora Latin-

American S.A. to the Royal Crown family of bottlers and look

forward to a long, profitable relationship.”

1. RCCI Technical Services International Seminar

Posted on August 18, 2010 by RC Cola International

RCCI Technical Services conducted an international seminar

in Manila – Philippines on March 4th and 5th for the Far East

& South Asia bottlers. There were 28 participants attending

the seminar from India, Thailand and Philippines. External &

RCCI teams presented an update on the latest technologies,

productivity improvement tools, and conducted an interactive

training exercise. The guest speakers included specialists

from Ecolab, Sidel and Anton Paar.

Topics Covered:

1. Food Safety, Cleaning and Sanitation in Beverage Plants

(by Mr. Albert Lee from Ekolab)

2. CO2 & Brix Measurement, in Plant and in Line (by Mr.

Alfred Baumegger from Anton Paar)

3. Bottle Blowing: Basics of Bottle Design, Preform

Selection, Trouble Shooting (by Mr. Patrice Lesage from

Sidel)

4. RCCI Technical Services (by Toby Polhamus from RCCI)

5. Six Sigma Tools – Affinity Diagrams, Root Cause

Analysis, Process Mapping & Control Charting, Lean

Manufacturing Tools – 5S, Kaizen Events,  and Rapid

Changeovers  (by Tim Adams from RCCI)

6. The Importance and Application of Sensory in the Plant

(training by Toby Polhamus and Krishna Mohan from RCCI)

Participants were challenged and rewarded for participation

and input in the interactive exercises. The seminar closed

with survey completion and presentation of certificates to

participants. The seminar was received very well. The

participants have given an overall rating of 4.48 out of 5.0

in their feedback survey for the overall value of the

seminar.

2. First moment of truth, when a consumer becomes a

shopper

Posted on May 15, 2012 by RC Cola International

A high priority for bottlers and distributors, and

ultimately retailers, is to drive consumers from the street

into the store. An enticing store exterior, especially in

high traffic areas, can be a huge factor in how many

consumers actually step inside and make a purchase.

Understanding this importance, Iceberg Foods Limited, RC

Cola bottler and distributor in India, launched a pilot

program aimed to increase RC’s market presence and to

satisfy existing and underserved market needs. Marketing

tools, such as billboards, counter wraps, and exterior

paintings, were used to execute the branding activity. In

the 50 outlets chosen, the results were overwhelming as

sales increased 200%!

This entry was posted in India, News from Around the World.

3. RC Cola continues to shake up the UK’s cola market

Posted on May 15, 2012 by RC Cola International

Following the successful launch of RC Cola regular and diet

in March 2011, Asda stores across the United Kingdom have

announced the addition of two new flavors, RC Cherry and RC

with zero calories. With almost half a million households

having already tried the brand, the new product offerings

will expand the brand’s in-store presence, help attract new

consumers, and offer existing customers more ways to enjoy

one of America’s original colas. Launch activities include

special trial prices, on-pack promotions, in-store sampling,

consumer giveaways, social media, and traditional public

relations.

This entry was posted in News from Around the World, United

Kingdom.

4. RC Cola debuts new, exotic flavors for RCCI global

bottler network.

According to Shiela Wan (2012), Royal Crown Cola

International (RCCI) announces the availability of an array

of new flavors in its beverage portfolio for its global

bottler network.

RCCI’s expanding bottler network in emerging markets such as

Africa, Southeast Asia and Latin America now has access to

RC Kick cola and the RCQ Special Edition Flavors line.

These new options give bottlers an edge in markets where

consumer demand for greater flavor variety is growing,

broadening their sales potential.

The new flavors are additions to RCCI’s existing portfolio

of beverage products, which include RC Cola, RCQ, Upper 10,

Cott Rain Energy Drink, Chadwick Bay and Ben Shaws.

RC Kick Cola combines RC Cola with the added punch of

guarana, an exotic fruit that gives a natural energy boost.

Along with guarana, RC Kick Cola features an advanced blend

of sugar and sweeteners to deliver a taste that stays true

to the RC Cola flavor consumers know and love, but with

fewer calories.

Its preformatted packaging designs can be tailored for any

market and are available for 2L and 0.5L bottles, as well as

16 ounce cans.

The packaging graphics deliver shelf impact that grabs

consumer attention, while the coloring and brand messaging

clearly communicate the benefit of guarana and reassure

shoppers that they are getting the delicious taste for which

RC Cola is known.

Formulated with exotic refreshment in mind, the RCQ Special

Edition Flavors line offers a mouth-watering assortment of

flavors including Guava Melon, Cranberry Acai, Sicilian

Lemonade and Guarana.

Each flavor’s packaging incorporates a unique creature

character that identifies the specific variant to generate

attention in stores and forge recognition.

Related Studies

Local Sources

1. Base on the studies of Rizza Alfonso (2011), MANILA,

Philippines - Waves of refreshing golden amber cola sweep

across the screen in rhythm with a rock song, carrying

viewers through an adventure into the RC Cola world. The

2011 local television commercial of RC Cola can be

considered the first-of-its-kind, using world-class special

effects in computer graphics imagery.  

The TV advertisement was directed by Canadian-Filipino

director Marc Andre Debruyne, who regards the project as a

real challenge because, he says, animation of cola “has

never been done this way before.” Some sequences were shot

live, requiring large vessels of cola to create and capture

those special splashes and vortex, while the rest are 3D

computer simulation done by a leading visual and animation

house in Kuala Lumpur, Malaysia.

In the past, celebrity endorsers helped gain mileage for the

RC Cola brand in the minds of consumers. This year, however,

as the product celebrates its eighth anniversary in the

Philippines, executives of local licensee Asia wide

Refreshments Corporation (ARC) felt that the company was

ready to put the product front and center of the advertising

campaign. Having already established solid brand equity

through the years, Rizza Alfonso, ARC senior manager for

marketing, says, “ARC wanted to showcase the brand itself

this time. Our advertisement focuses more on the brand’s

unique attributes.”

Visuals of carbonated fizz forming into enduring national

symbols that represent the country’s major regions show how

much the product has become a part of the Filipino

lifestyle. RC Cola was unheard of by an entire generation of

Filipinos since the 1970s when RC Cola was first introduced

in the country and then pulled out of the market that same

decade.

In 2003 when it was reintroduced here, from a virtual

unknown in an arena dominated by giant soft drink brands,

ARC slowly but surely built up a steady network of

distribution and consumption that has made it the most

preferred cola brand in Metro Manila today, catering to a

national market that yearns for value.

The fact that Filipinos have embraced an international brand

like RC Cola and made it their own was captured in the rock-

anthem style of Kamikazee’s Tamis ng Unang Tikim. The

catchy, high-energy song — full of attitude and heart —

talks about that sweet, unforgettable first sip. Most people

thought that the song was created specifically for the

commercial, but, in fact, it was an already recorded hit

song of the popular Pinoy band from its “Long Time Noisy”

album. Company executives and ARC’s in-house advertising

team decided it was the perfect audio background to the new

generation TV ad that proudly proclaims RC as “Cola ng

Bayan.”

2. Base on the study of Efren Peñaflorida Jr. (2012) - An

extraordinary thing happened one ordinary afternoon in March

2012. The place was Cavite City, and the humble but

purposeful kariton became king of the road. Pushcart after

pushcart assembled on the pavement, not in a parade but in a

peaceful revolution on the streets, representing stubborn

hope that plods on through the grittiest of circumstances.

The Kariton Revolution was spearheaded by the Dynamic Teen

Company of Efren Peñaflorida Jr. and Cavite City’s SK

Federation, in cooperation with the Tourism Council, the

city government, and the local Department of Education.

Various pushcarts were decked out to represent the following

causes: kalikasan, kabuhayan, kalinangan, kapayapaan,

kabataan, karunungan, kalusugan (nature, livelihood,

culture, peace, the youth, knowledge, health) aiming to

ignite a spirit of community volunteerism. The caravan

commenced at the Ladislao Diwa Elementary School, where

townsfolk, local officials, and celebrities recommitted to

the task of nation building.

One of the companies that participated in the advocacy

campaign was Asia wide Refreshments Corporation (ARC),

Philippine bottler of RC Cola. Championing the Kabuhayan

crusade, ARC donated an RC Cola food kiosk fitted with a set

of wheels so it could roll down Cavite’s thoroughfares

during the caravan, and to serve as a mobile sari-sari store

afterwards. The ARC management believes in the advocacies of

DTC; thus, the kiosk will go a long way as a revenue-

generating resource to further enable DTC to enable others.

Kariton Revolution’s advocacy is multi-pronged, precisely

because real life’s like that: literacy and livelihood have

health implications, which in turn affect the peace and

order situation, and so on. This network of shared needs and

values is something that ARC can understand because as a

retail company with global ties, its stakeholders include

customers, employees and their families, investors,

distributors, and host communities, among others. By

supporting the Kariton Revolution, ARC reiterates its pledge

to be “a good neighbor.”

Positive transformation is a beautiful, inspiring thing, but

the process is not easy. Volunteers of DTC started out by

lugging backpacks that contained study materials, and as the

number of their street pupils grew, the backpacks they

carried grew heavier as well, pushing them to re-strategize.

Bonn Manalaysay, mentor to Peñaflorida and other emerging

street heroes, recounted how a youth volunteer who was a

former mais vendor suggested that the kariton could be

maneuvered even through a narrow eskinita. The humble

vehicle proved to be an excellent metaphor for pushing on

despite the odds, and provided an opposite, hopeful image to

“crab mentality,” that attitude of pushing and pulling,

stepping on and grabbing, so desperate and negative that it

ensures virtually no freedom from the dire situation.

Kariton Klasrum eventually won for Peñaflorida the CNN Hero

of the Year award in 2009. Today, the alternative learning

program is being adopted by the Department of Education, and

is being replicated in different parts of the country and

soon, also in Indonesia.

It was important for the Kariton Klasrum to first grow roots

in Cavite, where, like in many barangays in the country,

children as young as seven years old are already being

recruited as gang members, said Manalaysay. “In Cavite, we

have the Samahan ng mga Mangingisda, the TODA … but people

are not aware that they should also mobilize for the sake of

peace and order, the environment, and other causes. It’s

about time,” and Cavite is a good place to start given that

“it is the country’s seat of independence.”

3. Base on the study of Gerry Garcia (2009), ARC executive

vice president and chief operating officer, said its market

share has been achieved based on an attainment of only 65

percent distribution capacity of the plant.The Asiawide

Refreshments Corp. (ARC), maker of RC Cola soft drink brand,

has already captured 30 percent of the cola market in Davao

City, barely five months since the company opened its P500-

million plant in Binugao, Toril district here.

"This proves that Davaoenos like our product," he said.

Garcia said at present, RC Cola brand is being distributed

by at least 300 business partner dealers and distributors in

Davao City and neighboring areas.

"The plant is not yet fully operational, but we are already

giving the market an option at the same time empowering our

dealers and distributors to boost their income," he said.

Garcia said the Binugao plant is the company's sixth and the

first to be established outside of Luzon. Five other

bottling plants are situated in Metro Manila, Southern Luzon

and Central Luzon.

He said capturing almost one-third of the market in Davao

City is not an easy feat for this new player in the beverage

industry, as its executives believe the five-month period

was so short a time for their cola products to make a niche

in the market.

At the moment, Garcia said the company is not looking into

dominating the market, but would rather focus on areas that

have remained untapped.

"We are not here to kill our competitors. We are here to

provide the market and the dealers with an option… and we

are on the right track," Garcia said.

He attributed RC Cola's fast growth in this part of country

to the novelty of tasting a new product and brand recall.

Garcia also pointed out that its "revolutionized" business

model that focuses on building business partnership with

dealers and distributors also worked for the company.

"We don't offer exclusivity. We are the only company that is

open to competition," he said.

"In a monopolized market, the dealers feel they are

controlled. They feel they have no leverage to negotiate for

a better deal. We come in and they have an option," he

added.

Garcia said the company also provides its retailers and

distributors incentives and an implement measures how it can

improve their business.

4. Base on Krista Angela M. Montealegre, InterAksyon.com

(June 25, 2012) MANILA – Former ambassador Alfredo M. Yao

will wait for the financial market turbulence to pass before

pursuing a plan to list his beverage businesses.

"[The] plan [is] still on but we will wait for [the] right

timing. We think it [market] will stabilize soon," Yao told

InterAksyon.com in a text message.

Yao chairs Zest-O Corp as well as Asia wide Refreshments

Corp (ARC), which holds the license to manufacture and

distribute RC Cola in the Philippines. Last February, Yao

said ARC's maiden share sale will happen ahead of Zest-O and

will be bigger than the P3.19 billion that thrift lender

Philippine Business Bank raised from an initial public

offering (IPO) early this year.

Proceeds of the possible IPO will bankroll RC Cola's

domestic and overseas expansion.

The group of Yao, Antonio Panajon, Gerry Garcia, Butch Aves

and Ricky Sandoval formed ARC in 2002 and secured the

exclusive RC Cola license from Royal Crown Cola

International.

Aside from flagship RC Cola, ARC markets Zesto Fruit Soda

and Arcy's Rootbeer.Zest-O was established in 1981 as

Semexco Marketing Corp, pioneering the first-ready-to-drink

juice drink in flexible foil pouch. The company operates

five manufacturing plants around the country and employs

approximately 100 personnel for each facility.Zest-O markets

the flagship Zest-O, Sunglo and Big 250 juice drinks as well

as health drinks under the one brand.

5. Base on the study of Christian Bautista (2013) - The

group of former Ambassador Alfredo Yao plans to list its

soft drink company RC Cola following the success of its

initial public offering (IPO) for Philippine Business Bank

(PBB).

The move is expected come ahead of the group's planned IPO

for juice drink unit Zest-O Corp. and airline Zest Air.

Yao said that he plans to list RC Cola within the year and

expect proceeds to be "definitely be bigger than PBB."

The PBB stock listing, which took place on Tuesday, February

19, generated P3.2 billion.

The PBB stock opened at P34.75, higher than the IPO price of

P31.50 per share.

The stock contributed to another record day at the

Philippine index, which breached the 6,600 mark for the

first time ever.

Yao owns a majority stake in Asia wide Refreshments Corp.

(ARC), which has the exclusive rights to manufacture and

distribute RC Cola in Southeast Asia.

He said that the company is considering opening

manufacturing plants in Thailand, Myanmar and Vietnam.

ARC has 14 plants in the Philippines and is looking toward

expansion. It recently opened a plant in Cagayan de Oro and

is set to open another facility in Pangasinan within

February.

Yao, who said that he is eyeing a public float of 30% to 35%

for ARC, attributed RC Cola's competitiveness to its use of

returnable bottles, which makes the beverage cheaper.

ARC, the exclusive distributor of American brand RC Cola,

began its operations in 2002.Among the company's soft drink

brands are RC Cola, Zest-O and RC Root beer.

Foreign Sources

1. RC Cola is Better than Pepsi or Coke, base on the study of

Q. Reyes Apr.18, 2010 in Artistic Warfare

There’s no denying that RC Cola tastes better than Pepsi or

Coke.  This is a fact that discerning soda drinkers

throughout the world have known for many years.  What’s the

problem? Marketing. RC Cola doesn’t have the money to hire

the Michael Jacksons, or Britney’s, or Shakers or animate

cute polar bears and run propaganda campaigns on

television.  They don’t have the connections to partner up

with the McDonald’s or KFC’s of the world in order to sell

their beverage.

RC Cola is for real people.  Real poor people.  You know

why?  Because their price is right, but their quality is

better.  I’m not saying Pepsi or Coke doesn’t have their

valid merits – they’re beverages that get the job done, as

well.  I’m speaking of people buying into marketing rather

than true taste.

For example, Shasta is a “no-no” even for poor people.  Even

though their price is right too, there’s something extremely

suspicious about .99 cents for 8 gallons of soda.  The math

just doesn’t add up.  On top of the price being suspiciously

low, if you don’t drink your Shasta 4-liter within 2.2

seconds of opening it, it goes flat.  Not just flat… but

disgustingly flat.

I’m hoping not to offend anyone with my observation today,

and I hope my Shasta comments weren’t too harsh or

politically incorrect.  I could dig in deeper and start

calling out other sodas, such as Wal-Mart’s American Fare or

Big K soda (from the east coast), but I think I’ve ruffled

enough feathers with crowning ROYAL CROWN as the ultimate

soda for the working class.

Royal Crown Soda– the official blue collar drink!

2. Base on Olly Wehring, (2012) Cott Beverages' RC Kick

cola, RCQ Special Edition Flavors.

Category - Soft drinks, CSD

Available - From this month

Location - Global, including Africa, South-East Asia and

Latin America

Price - Not specified

Distribution - Royal Crown Cola International

Cott Beverages has launched two CSD flavor lines through its

Royal Crown Cola International (RCCI) unit.

RC Kick Cola is a blend of RC Cola and guarana. The RCQ

Special Edition Flavors range comprises Guava Melon,

Cranberry Acai, Sicilian Lemonade and Guarana.

3. Royal Crown Cola International salutes growing African

cola thirst

Base on Ben Bouckley, (Aug-2012)

RC Cola International (RCCI) says that per capita cola

consumption is low in Africa and that it plans to exploit

growth opportunities across the continent by growing its

bottling network there.

The company recently attended the SAITEX and Africa’s Big

Seven 2012 show in Johannesburg, South Africa, where it

discussed its bottling network expansion in emerging markets

such as Southeast Asia, Latin America and Africa.

Moshy Cohen, vice president of marketing for RCCI (a

subsidiary of Cott Beverages since 2001) told

BeverageDaily.com that the firm didn’t see Africa as a

“single country with a single opportunity”.

“The cola market in Africa has been developing over the

years. At the same time, the per capita figures are still

very low and there is room for a great deal more growth,” he

added. Market share could vary he was responding to a

question regarding the extent of the market opportunity for

RCCI in Africa as it expanded its bottling network.

“There are more than 40 countries that make up Africa, each

with its own market opportunities, and RCCI considers each

one on an individual basis,” he told BeverageDaily.com.

“We analyze what each market’s requirements would be, review

the product portfolio and identify the different potential

bottling operations.”As a result, Cohen said, the potential

market share for RCCI could vary considerably in Africa;

based on the firm’s global experience, it varied from 5% to

30%.Cohen refused to be drawn on whether RCCI faced a fight

in Africa against established local brands and obvious

bigger multinational rivals, i.e. Pepsi and Coke.

4. RC Cola comes to India

Base on Ratna Bhushan,New Delhi , Oct. 6,2003

EVEN as the controversy over high traces of pesticide in

soft drinks is yet to be sorted out, the world's third

largest cola brand, Royal Crown Cola (or RC cola), has now

come to India.

While RC Cola was introduced in Delhi, and parts of Punjab

and Haryana on Sunday, the brand was soft-launched in

pockets of Andhra Pradesh and Madhya Pradesh almost a month

back.

The RC Cola brand was acquired by the London-based Cadbury

Schweppes Plc in October 2000. However, subsequently, the

Canada-based Cott Cola acquired the rights for the RC Cola

brand for all world markets other than the US. In the US, RC

Cola claims an approximate two per cent share of the total

cola market, while 12 per cent of the brand's sales are

outside the US and Canada. RC also supplies concentrate to

some other soft drink brands. For its Indian operations, the

company has appointed three licensing, franchising bottlers.

While the Delhi-based Shivam Cool Drinks has been appointed

as RC Cola's bottler for the Delhi, Western Uttar Pradesh,

Haryana, Uttaranchal and Chandigarh markets, Asian Lak

Health Foods Ltd has been appointed as RC Cola's bottler for

Punjab, Haryana and Chandigarh. For the Andhra Pradesh and

Madhya Pradesh markets it is Trinity Beverages.

RC Cola has been introduced in PET bottles of 600 ml and 2-

litre, priced at Rs 15 and Rs 40, respectively. There are no

immediate plans to foray into glass bottles, Mr. Rehan Khan,

Head, Operations, Shivam Cool Drinks, told Business Line.

However, in acknowledgement of the fact that small sizes

would be required to drive volumes, options of introducing

RC Cola in smaller PET bottles are currently being explored.

"The smaller bottles, at lower prices, could be introduced a

couple of months later. However, the plans have not yet been

finalized, Mr. Khan said.

While RC Cola is being introduced in `cola nut' (a tropical

cola nut) flavor for the time being, the brand will be

introduced in lemon and orange flavors the following month.

Meanwhile, the company claims it has made all efforts to

ensure safety of the ground water for bottling the beverage.

According to Mr. Khan, the groundwater being used by Shivam

Cool Drinks for RC Cola, for example, has been cleared by

the verification and testing institute, SGS India Pvt Ltd.

Unlike Coca-Cola and Pepsi, RC Cola will not splurge big

budgets on marketing and celebrity advertising. "We are not

competing with Coke and Pepsi head-on. Currently, the brand

is in test-marketing stage, and we have to gauge consumer

response to RC Cola before finalizing specific marketing

strategies," Mr. Khan said.

5. RC Takes Fight on Coke, Pepsi Deals to Public : Ads

Object to Dr Pepper, Seven-Up Acquisitions.

Base on the study of Jube Shiver Jr., June 12, 2000 Times

Staff Writer

Royal Crown Cola Co., seeking to boost its bid to block

separate corporate mergers proposed by soft-drink giants

Coca-Cola Co. and Pepsico, is launching a nationwide

advertising campaign today encouraging consumers to oppose

the mergers.

At issue are two merger plans that would concentrate 80% of

the U.S. soft-drink industry in the hands of the two

beverage giants. Coca-Cola has proposed a $470-million

buyout of Dr Pepper, and Pepsico has announced plans to

purchase Seven-Up Co. for $380 million. Both mergers are

under review by the Federal Trade Commission in Washington.

Many analysts say the deals pose a key test of how far the

Reagan Administration will go in allowing companies to

combine as they wish.

Royal Crown argues that the mergers would reduce

competition, drive independent bottlers out of business,

increase prices for consumers and "and threaten the jobs of

thousands of workers."

Ad Campaign

The company has purchased full-page advertisements headlined

"The Cola Wars and You," scheduled to appear in seven major

daily newspapers, including the Los Angeles Times, at a

total cost of $200,000. The ads, signed by James W.

Harralson, executive vice president and chief operating

officer of Royal Crown, explain the company's position and

ask consumers to let him know how they "feel about this

issue."

"Soft-drink consumers would be better off if RC's marketing

programs were as aggressive and well-funded as its lobbying

efforts," countered Pepsi spokesman Jim Griffith. "The

consumers' interest is best served by a variety of top-

quality products that are aggressively marketed. . . .

That's exactly what our purchase of Seven-Up is designed to

produce."

In Atlanta, a Coca-Cola spokesman said: "Our proposed

acquisition of Dr Pepper does not violate antitrust law and

is pro-consumer."

Royal Crown, the sixth-largest beverage company in the

United States, has been a vocal opponent of the separate

mergers planned by Coke and Pepsi since the deals were

announced about 4 1/2 months ago.

A spokeswoman for the FTC declined to comment on the

proposed mergers, saying that it's the agency's policy not

to discuss whether it is investigating any mergers. But

spokesmen for Coke and Pepsi confirmed that the FTC, which

did not seek court injunctions against any proposed

corporate mergers last year, is continuing its review.

References:

1. http://business.inquirer.net/108483/local-rc-cola-firm-

eyes-ipo

2. http://topazreviews.blogspot.com/2010/12/topaz-review-

of-rc-cola.html 

3. http://dmanews.com/philippines-most-successful-rc-cola-

market-outside-u-s-8448.html.

4. http://www.rcciinsight.com/index.php/2010/08/chile/

5. http://www.rcciinsight.com/index.php/2012/05/first-

moment-of-truth-when-a-consumer-becomes-a-shopper/

6. http://www.rcciinsight.com/index.php/2012/05/rc-cola-

continues-to-shake-up-the-uks-cola-market/

7. http://wwa.interaksyon.com/business/64894/as-stock-

market-tanks-zest-os-alfredo-yao-puts-ipo-plan-on-hold

8. http://balita.ph/2009/11/08/rc-cola-captures-one-third-

of-cola-market-in-davao-city/

RESEARCH PARADIGM

HYPOTHESIS

Research Hypothesis: It is hypothesized that, If that the Rc

cola content would be safe for those consumer, if there’s

negative side such as acid, fats and etc. What would be the

efficient ways does the Rc cola company will be used to keep

their consumer still patronized it. If their market

strategies will be the top reasons why does they become the

top manufacturing company in local beyond of those multi-

company competitors.

OPERATIONAL DEFINITION OF TERMS

The following terms are defined operationally and

lexically to provide a common frame reference:

1.Acquisition. The act of acquiring or

gaining possession: the acquisition of real-estate.

2. Advertise. Describe or draw attention to public medium to

order to promote sales or attendance.

3.Advertisement. A public notice; means to inform and give

knowledge about a particular product.

4.Affinity Diagram. Is a business tool used to organize

ideas and data.

5.Affordable. Inexpensive; reasonably priced.

6.Aspect. A particular part or feature of something.

7.Beverage. A drink; esp. One other than water.

8. Blue Collar. Designating manual industrial work or

workers.

9.Brand. A type nof product manufactured by a comapany under

a particular name.

10.Boost. A source of help or encouragement leading to

increase or improvement.

11.Business.

A person, partnership, or corporation engaged in commerce,

manufacturing, or a service; profit-seeking enterprise conce

rn.

12.Business Model. Design of the operations of

a business which focuses on how revenue will be generated.

13.Capacity. The maximum amount of something that contain.

14.Cola. This refers to a carbonated soft drink colored

usually with caramel and flavored usually with extracts from

kola nuts.

15.Company. A commercial business.

16.Consumer.A design of the operations of a business whichfo

cuses on how revenue will be generated.

17.Consumption. The using of a resource.

18.Corporation. A company or group of people authorized to

act as a single entity and recognized such as in law.

19.Control. The power to influence or direct people's

behaviour or the course of events.

20.Data. Facts and statistics collected together for

reference or analysis.

21.Deliver. Bring a hand over (a letter; a parcel; or

ordered goods) to the proper recipient or address.

22.Diet Rite.  Is a brand of no-calorie soft

drinks originally distributed by the RC Cola company. It was

introduced in 1958 and initially released as a dietetic

product, but was introduced nationwide and marketed to the

general public as a healthful beverage in 1962.

23. Distributor. An agent or who supplies goods to stores

and other businesses that sells to the consumers

24.Entrepreneur.A person who organizes and manages any enter

prise, especiallya business, usually with considerable initi

ative and risk.

25. Enterprise. A project undertaken or to be undertaken,

especially one that is important or difficult or that

requires boldness or energy: To keep the peace is a

difficult enterprise.

26. Experiment. A scientific procedure undertaken to make a

discovery; test a hypothesis ; or demonstrate a known fact.

27. Experts. A person who has a comprehensive and

authoritative knowledge of or skill in a particular area.

28.Financial. Relating to finance.

29. Fizz. Soda water or other effervescent water.

30. Flagship. The best or most important one of a group or

system: This store is the flagship of our retail chain.

31. Flavour. The distinctive quality of a particular food or

drink as perceived by the taste buds and the sense of

smells.

32. Flourish. A bold; extravagant gesture or action; made

esp.; to attract the attention of others.

33. Footprint. The area covered by something; in particular.

34.Franchise. An authorization granted by a government or

company to an individual or group enabling them to carry out

specified commercial activities.

35.Ginger Ale. A sweetened effervescent nonalcoholic drink

flavored with ginger extract.

36. Industry. Economic activity concerned with the

processing of raw materials and manufacture of goods in

factories.

37. International. Existing; Occurring; or carried on

between two or more nation.

38. Investment. The action or process of investing for

profit or material result.

39.Legend. A traditional story of popularly regarded as

historical but unauthenticated.

40.Litter. A metric unit of capacity; formerly defined as a

volume of 1 kilogram of water under standard condition.

41.Network. Connect as operate with a network. " the stock

exchanges are resourceful in networking these deals.

42.Manufacture. The making of articles on a large scale

using machinery.

43. Market. A regular gathering of people for the purchase

and sale of provisions; livestock; and other commodities.

44.Meeting. An assembly of people for discussion or

entertainment.

45.Partner. A person who takes part undertaking with another

or others; esp.; in a business or company with shared risks

and profits.

46.Partnership. The state or condition of being a partner;

participation; association; joint interest.

47.Patronize. Treat with an apparent kindness that betrays a

feelings or superiority.

48. Pharmacist. A person who is professionally qualified to

prepare and dispense medicinal drugs.

49.Physical assets. Actual property such as precious metal

or real states. Also called real or tangible assets.

50. Place. A particular position or point in space.

51.Popularity. The state or condition being liked; admired;

or supported by many people.

52. Plan. A detailed proposal of doing or achieving

something.

53. Price. The amount of money expected; required or given

in payment of something.

54.Private. Belonging to or for the use of one particular

person or group of people only.

55. Produce. Make or manufacture from components or raw

materials.

56. Process Management. Is the ensemble of activities and

planning and monitoring the performance of the process.

57. Products. A particle or substance that is manufactured

or refined for sale.

58.Production. The action of making manufacturing from

components of raw materials; or the process of being so

manufactured.

59. Promotion. The publicization of a product; organization;

or venture to increase sales or public awareness.

60.Refreshment. A giving of fresh metal or physical strength

or energy.

61. Refreshment. A giving of refresh metal or physical

strength or energy.

62. Strategies. A plan of action or policy designed to

achieve a major or overall aim.

63. Sell. Give or hand over (something) in exchange for

money.

64. Society. The aggregate of people living together with in

a more or less ordered community.

65.Soda. Carbonated soft drinks.

66. Soft drinks. A Non-Alcohol beverage typically contains

water. Usually a sweetener and usually a flavouring agent.

67.Spanning. To extend or Reach over or across (space or

time)

68. Taste. The sensation of flavour perceived in the mouth

and throat on contact with a substance.

69.Thirst.A sensation of dryness in the mouth and throat cau

sed by need of liquid.

70.Website. A computer connected to the internet that

maintains a series of web pages on the World Wide Web.

71.Customer Satisfaction – refers to "the number of

customers, or percentage of total customers, whose reported

experience with a firm, its products, or its services

(ratings) exceeds specified satisfaction goals."(3)

Quality management - refers to act of overseeing all

activities and tasks needed to maintain the desire level to

of excellence. (4)

72.Service quality - refers to customer service need and

expectation.

73.External customer service - refers to "the ability of an

organization to constantly and consistently give the

customers what they want and need," (5)

74.Internal customer - refers to the service is when

customer service is provided to those whom a business

depends on for its day-to-day operations. (6)

75.Variables – refers to characteristics, number,

or quantity that can be measured or counted.

SYNTHESIS OF REALTED LITERATURE AND STUDIES

The above literature and studies were virtually helpful

to comprehend and be aware of the issues and problems as

well as the status of RC Cola Company in the industry on

beverages in the Philippines.

Most customers are aware to meet their satisfaction or

fulfill their wants and needs, to maintain the desire level

of their beverage. The relevance of this study is to have

more idea about how you treat and respect the customer.

Because were the lifeblood of any beverages are not given

proper attention and meaning to the taste that suite to

their target market. Loyalties of customer for the RC Cola

Company and customer satisfaction were really hardest part

of Quality Management.

Along in the line of relevance, the study of Q. Reyes

was makes the researcher aware on the marketing strategies

of RC Cola Company applied to the beverages business. In the

review of O'Keeffe (2013), a key success strategy of ARC in

the Philippines is adopting a business model that values

close partnership with dealers and encourages sustainable

livelihood.

The reviewed literature and studies give the researcher

valuable insights, ideas, pointers in the design and

development of the study which an edge of RC Cola Company to

the Multi- Company of beverages.